More Oil Price Volatility Expected as Saudis Put the Boots to the U.S.: Kilduff

John Kilduff says the Doha no deal could see Saudi Arabia tighten the screws on U.S. oil producers.

While analysts such as  Michele Della Vigna of Goldman Sachs says the failure of the Doha meeting to curb oil production is good for the long-term recovery of the global oil market, John Kilduff, partner at Again Capital, worries that it has emboldened Saudi Arabia to tighten the screws on U.S. oil producers.

Kilduff told CNBC's "Squawk Box" that "I think there's going to be one more beat down for prices that's really going to inflict the kind of pain the Saudis really want to [inflict] to the rest of the higher cost producers."

The Saudis, he added, are "not done with us yet. They are not done fixing our wagon yet."

An estimated 350 U.S. oil rigs (down from a peak of 1,600) means that oil production has dropped by about 600,000 barrels per day (bpd) from a peak of nearly 9.7 million bpd.

Squawk Box also discussed the likelihood that the Saudis will also target Iran for price punishment, considering the countries support opposing sides in Syria and Yemen conflicts.

Meanwhile, no end of theories are being offered for the failure of the April 17 Doha talks, with Emmanuel Ibe Kachikwu, oil minister for Nigeria, telling reporters "There was an initial draft that everyone had sort of seen and came to the meeting on the basis of that draft; there was a lot of consensus around it."

"And then this one was a different draft, which tended to create a link to Iran's compliance with the freeze obligation."

It's anyone's guess whether the Saudis, which deep-sixed the Doha meeting when it became clear Iran had no intention of curbing production, were ever serious about cooperating with fellow Organization of the Petroleum Exporting Countries members and non-members, given the mixed messages about its participation it had been sending for the past few months.